The Organisation for Economic Co-operation and Development (OECD) has urged the South African Reserve Bank to continue its efforts to rein in inflation.
- The OECD has commended the Reserve Bank for its efforts to curb inflation, which has been driven by rising food prices and other factors.
- South Africa’s food inflation rate surged to a 14-year high in March 2023, with prices for food and non-alcoholic beverages increasing by 14.0% on year.
- Food inflation is the main contributor to South Africa’s escalating consumer price index inflation rate, which increased to 7.1% in March 2023.
- The OECD has warned that rising inflation could lead to higher interest rates, which could hurt economic growth and job creation.
- The Reserve Bank has already raised interest rates twice this year in an effort to curb inflation, and the OECD has urged it to continue its efforts.
- The OECD has also called on the South African government to implement structural reforms to boost economic growth and create jobs.